The $2.2 billion required for the construction of a new 67-story hotel, entertainment, and casino in Las Vegas has been secured through a joint venture between Koch Real Estate Investment and Fontainebleau Development.
The JV to start building what will be known as Fontainebleau Las Vegas was led by JPMorgan in terms of construction financing. It is anticipated to start moving decks in the fourth quarter of 2023. Furthermore, Blackstone Real Estate Debt Strategies, SMBC, and Goldman Sachs are some of the additional lenders involved.
Jordan Roeschlaub and Dustin Stolly of Newmark negotiated the debt on the partnership’s behalf. Additionally, the financing comes a week after the Federal Reserve raised interest rates for the seventh time in 2022. This discouraged many developers from their chances of getting construction loans.
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An insight into the Fontainebleau Las Vegas hotel, entertainment, and casino
The two groups paid an undisclosed sum in 2021 to purchase the site at 2777 South Las Vegas Boulevard. The plot is near the northern end of the strip and covers approximately 25 acres.
The building will be about 9 million square feet. On the property, Fontainebleau and Koch intend to erect 3,700 hotel rooms. Additionally, there will be 550,000 square feet of adaptable conference and meeting space.
According to Jacob Francis, president of Koch, securing $2.2 billion in financing in today’s market speaks to the general faith in this project, and the team that’s come together to bring it to Las Vegas.
In a statement, Fontainebleau president Brett Mufson said, “This is a milestone for Fontainebleau Las Vegas and stands as a monument to the extraordinary dedication of our team and our partners at Koch Real Estate Investments.”
The company also unveiled plans for a 50,000-square-foot event space in Miami Beach in October.
